Celgene Corporation (NASDAQ: CELG)
Celgene Corporation recently reported it’s earnings; and while the report was positive, the company’s stock fell. However, it seems as though we’re starting to see movement in the positive direction. So now, the big question pops up. Will CELG continue the upward momentum? Here’s what I see…
What I Think The Reason For The CELG Decline Could Be
While overall, the Celgene earnings report was positive, the did miss on top-line revenue. However, on the EPS beat, I couldn’t imagine investors being too concerned about the miss. However, I think that the top-line miss brought up a serious concern. The reality is that Celgene is currently facing an issue that many of its peers have faced in the past or will in the future. Generic competition is popping up against the company; and lower than expected revenue could be a sign that the competition is fierce!
Why I’m Not Concerned About Celgene’s Generic Competition
The big concern seems to be revolving around competition. However, I’m really not all that concerned, and the reason why is simple. As I mentioned in yesterday’s post about earnings, even in the face of mounting competition, the company was able to produce wider than expected gains. CELG is a massive company and they got there for a reason. They have a track record of producing great products for the treatment of cancer and other ailments, and I have no doubt in their ability to stay a step ahead of the competition.
What We’re Seeing From CELG Today
Investors seem to be regaining strength in Celgene as well. After a steep morning climb in the stock price this morning, we saw a correction; followed by slow and steady movement. Currently (12:14), CELG is trading at $109.77 per share after a gain of 1.58% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see great things out of CELG in both the short term, and the long term. In the short term, the movement suggest that the stock has reached support; so, we should see more growth to come. In the long term, I believe that CELG is fundamentally sound, and shouldn’t have much of an issue; even as more generic competition pops up! All in all, we should see both short and long term gains.
What Do You Think?
Where do you think CELG is headed and why? Let us know in the comments below!